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Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

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Currencies

Euro suffers worst month against the pound since financial crisis

Political risks are still all the rage in the currency markets. The euro has suffered its worst slump against the pound since 2009 in November, as investors hone in on a series of looming battles between eurosceptic populists and establishment parties at the ballot box. The single currency has shed 4.5 per cent against sterling […]

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Banks

RBS falls 2% after failing BoE stress test

Royal Bank of Scotland shares have slipped 2 per cent in early trading this morning, after the state-controlled lender emerged as the biggest loser in the Bank of England’s latest round of annual stress tests. The lender has now given regulators a plan to bulk up its capital levels by cutting costs and selling assets, […]

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Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

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Banks

Carney: UK is ‘investment banker for Europe’

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Categorized | Equities

Financials feel the force of EM sell-off


Posted on August 27, 2013

Financial stocks in Europe most exposed to emerging market assets found themselves nursing heavy losses as the EM sell-off gathered pace.

The region’s EM and periphery equity markets were particularly hard hit – Turkey’s BIST 100 index fell 4.7 per cent, while Spain’s Ibex and Italy’s MIB both made losses in excess of 2 per cent.

    Austria-listed financial duo Raiffeisen International and Erste Bank were among the biggest fallers, down 5 per cent to €25.60 and 5.5 per cent to €24.10, respectively.

    Both banks have operations in eastern European markets.

    Germany’s Commerzbank
    also stood at the bottom of the FTSE Eurofirst 300 index, down 5.5 per cent to €8.45, while Dutch bank ING
    fell 5.2 per cent to €8.22 and France’s Société Générale
    shed 4.7 per cent to €32.81. Italy’s Intesa Sanpaolo
    fell 4.4 per cent to €1.45.

    Shares in Italy’s UBI Banca
    had been higher in early trade after forecast-beating second-quarter earnings. However, market momentum left the stock 3.4 per cent lower at €3.33 by the close.

    The FTSE Eurofirst 300 ended the session 1.7 per cent lower at 1,202.36.

    “The uncertainty is being created by the potential for some form of military action in Syria, political uncertainty in Italy and the timing of a Fed tapering programme,” said Michael Hewson at CMC Markets.

    Carmakers were the weakest industry group on the pan-European index.

    Germany’s Daimler
    fell 4.8 per cent to €52.89, despite winning a domestic court appeal to overturn the suspension of sales of Mercedes-Benz models that use a coolant EU regulators want to ban.

    France’s Renault
    fell 4.7 per cent to €56.45 and Italy’s Fiat lost 3.7 per cent to €5.78.

    Few stocks were on the positive side of the Eurofirst index, most of them London-listed after UK investors returnedafter Monday’s public holiday.

    OMV
    , the Austrian oil company, climbed 1.5 per cent to €35.47 after SocGen raised its target price on the stock €38 from €35.